Dr. Hamad Kasasbeh

A government shutdown in the United States is no longer an exceptional event. It has become a scene that repeats every few years when Congress fails to pass the budget. Yet today’s crisis goes beyond a domestic political dispute. It comes at a time when the world is more fragile, shaken by the pandemic, wars, and economic volatility.

The concern is not only about closed government offices or delayed economic data, but about the negative signals sent to markets. Investors rush to gold, the dollar swings, and global trust in the “world’s leading financial center” weakens whenever America’s institutions stall.

Past experience makes the picture clearer. In the longest shutdown of 2018–2019, the lives of around 800,000 employees were disrupted, and the U.S. economy lost billions. These are not just cold numbers, but stories of families losing income temporarily and businesses hurt by weaker government spending.

Today, the challenge is greater. The global economy is more connected, and countries tied to the dollar are more vulnerable. Any slowdown in America means weaker demand for exports, more pressure on oil-producing states, and higher debt costs for developing countries.

There is also a political dimension that is no less serious. The image of repeated shutdowns undermines confidence in America’s ability to manage its affairs, while giving room for rivals like China to promote their call for reforming the global financial system.

Forecasts suggest this shutdown could last for weeks, especially with elections approaching and partisan divides widening. Long shutdowns are rare, but their repetition alone is enough to raise doubts about the stability of the world’s largest economy.

In the end, the U.S. shutdown is not just a domestic crisis. It is a snowball rolling toward the rest of the world.

The longer it lasts, the heavier the impact on markets and countries tied to the dollar. Perhaps it is time for the world to rethink its reliance on a financial system that can be paralyzed by internal political bargaining.